BNDX vs VGIT

BNDX tracks the Bloomberg Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged): investment-grade bonds issued outside the United States, with currency moves hedged against the dollar. It owns 6,837 bonds from an index of 14,644, as of Sep 30, 2026.

VGIT tracks the Bloomberg U.S. Treasury 3-10 Year Bond Index: U.S. Treasury securities with three to ten years remaining. It held 102 bonds on Sep 30, 2026, all of them Treasuries. The two funds sit at opposite ends of the bond market, so their holdings lists are completely different.

Holdings counts are not directly comparable: some are a count of bonds, others a count of lines in a holdings file, which can include cash and futures.

The largest bond line in BNDX is 0.41% of the fund (Jul 31, 2026) and the largest in VGIT is 1.92% (Aug 31, 2026). The VGIT top ten is all U.S. Treasury notes, while the BNDX top ten is not (see the table). The top ten total 3.47% of BNDX and 18.51% of VGIT. VGIT owns only 102 bonds, so each position is large and its top ten make up 18.5% of the fund.

The two lists are dated differently on purpose, because each issuer publishes holdings on its own schedule: BNDX Jul 31, 2026 (SEC Form N-PORT, filed Sep 28, 2026 (fund-level, all share classes)); VGIT Aug 31, 2026 (SEC Form N-PORT, filed Oct 29, 2026 (fund-level, all share classes)).

No bond appears in both funds. I matched 6,821 distinct identifiers in BNDX (Jul 31, 2026) against 103 in VGIT (Aug 31, 2026), using CUSIP codes and, for international bonds, ISIN codes, and found no match. That is what the index descriptions predict: BNDX holds bonds issued outside the United States, and the other fund holds U.S. issuers. Holding both would add a separate source of bond exposure rather than repeat the same bonds.

Corporate bonds split three ways

Each issuer uses its own labels (BNDX: Distribution by issuer (Vanguard label), Sep 30, 2026; VGIT: Distribution by issuer (Vanguard label), Sep 30, 2026). This page groups them into common categories: “Treasury and agency” adds Treasury, agency and government lines; corporate adds industrial, financial and utility bonds; “Other and cash” holds the remainder.

Vanguard’s BNDX fact sheet gives an average effective maturity (8.2 years) and duration (6.4 years) but no table of maturity bands, so a band-by-band comparison is not possible here and nothing has been estimated. Average maturity is 8.2 years for BNDX and 5.6 years for VGIT, which is 2.6 years apart; duration is 6.4 and 4.8 years.

Average maturity: BNDX Sep 30, 2026, VGIT Sep 30, 2026. Maturity bands are shown on other comparisons on this site where both funds publish them.

Duration estimates how much a bond fund’s price moves when yields change. A duration of 6.4 years means a rise of one percentage point in yields would lower the price by about 6.4%, and a fall of one point would raise it by about the same.

BNDX reports average duration of 6.4 years (Sep 30, 2026); VGIT reports average duration of 4.8 years (Sep 30, 2026). That is a difference of 1.60 years, which is large enough to matter: the fund with the higher duration will move more when yields change.

Estimate: price change ≈ −duration × change in yield, applied to $10,000. It ignores interest income, convexity, spread changes and trading costs, so real results will differ. Neither fund’s fact sheet used here lists convexity or an option-adjusted spread.

The 30-day SEC yield is the standard way to compare bond funds because every fund calculates it the same way, after expenses. BNDX showed 3.90% and VGIT showed 4.90%, a gap of 1.00 points. Both figures are dated Nov 5, 2026. Yield to maturity is shown with its date where the issuer publishes it.

Trailing 12-month yield is a record of what was paid, not a forecast: 4.64% for BNDX and 3.98% for VGIT. BNDX paid an unusually large distribution of $0.9686 on Dec 18, 2025, well above its usual monthly amount, which lifts its trailing 12-month yield. BNDX’s yield is after the cost of hedging currency, which is one reason it sits below the U.S. funds.

Monthly payouts per share, newest first

Third-party payout history (StockAnalysis, Nov 9, 2026), the 12 most recent payouts listed, which include two in December 2025 and none dated January 2026. Per-share amounts differ because the funds have different share prices (about $48 against $58), so compare yields, not dollars per share. Bond fund payouts change from month to month with the income the fund earns.

Average annual returns to September 30, 2026

Calendar-year returns

Net asset value (NAV) total returns, with distributions reinvested, from Vanguard fact sheet (Sep 30, 2026) and fund page for BNDX and Vanguard fact sheet (Sep 30, 2026) and fund page for VGIT. Past performance does not guarantee future results. The funds launched in different years (BNDX May 31, 2013, VGIT Nov 19, 2009), so since-inception figures (2.20% and 1.99%) cover different periods and are not compared here.

BNDX charges 0.04 percentage points more, which is $4 a year more on $10,000. Both funds are large ($85.43B and $41.51B), and large funds usually trade with tight spreads. BNDX’s assets above are the ETF share class only; Vanguard reports $121.7B (Sep 30, 2026) across all share classes of the fund.

VGIT’s assets above are the ETF share class only; Vanguard reports $47.8B (Sep 30, 2026) across all share classes of the fund. Neither fund’s fee is likely to be the largest cost of owning it: the choice of how much to hold in bonds, and for how long, matters far more than a few hundredths of a percent.

Interest from bond funds is generally taxed as ordinary income rather than at the lower rates that apply to qualified dividends, and the monthly distributions of these funds are mostly interest. For that reason many investors hold taxable bond funds in tax-advantaged accounts, such as retirement accounts, when they have the choice. Some interest from U.S. Treasuries can be exempt from state income tax; how much of each fund’s income qualifies is reported by the issuer after year-end and varies by fund and year.

VGIT holds only Treasuries, so more of its income may qualify for the state-tax exemption than the income of a fund that also holds corporate and mortgage bonds; the issuer reports the exact share after year-end. BNDX holds foreign bonds, so part of its income can come with foreign tax considerations that differ from the U.S. funds; check the issuer’s tax reporting.

Canadian and other non-U.S. investors face their own rules, including currency conversion and withholding considerations, and should check them before buying a U.S.-listed fund.

Every figure on this page, with its source, date and evidence grade. Open the issuer documents before relying on any number.

Third-party sources

StockAnalysis, BNDX · StockAnalysis, VGIT.

Methodology and limits

• Issuer figures are shown with their own dates. Where the two funds report on different dates the page says so and does not mix them silently.
• Sector and maturity overlap are this page’s sums of the smaller weight in each common category, and are approximate because issuers use different labels.
• Holdings overlap matches bonds by CUSIP or ISIN between the two holdings files named above; bonds without an identifier cannot be matched.
• Figures that were unavailable are marked as such, and nothing was filled from memory or from another fund.
• Rate-sensitivity figures are estimates from reported duration only.

BNDX vs VGIT, which is better?

Neither is better in general, because they do different jobs. BNDX holds investment-grade bonds issued outside the United States, with currency moves hedged back to the dollar, while VGIT holds only U.S. Treasury notes and bonds with 3 to 10 years left to run. The right one depends on the role bonds play in a portfolio, the investor’s tolerance for interest-rate and credit risk, and the account used.

BNDX vs VGIT, what is the difference in fees?

BNDX charges 0.07% and VGIT charges 0.03%, a difference of 0.04 percentage points, or $4 a year on $10,000.

BNDX vs VGIT, which has the higher yield?

BNDX showed a 30-day SEC yield of 3.90% on Nov 5, 2026 and VGIT showed 4.90% on Nov 5, 2026. The gap is 1.00 points, measured on the same date.

BNDX vs VGIT, how much do they fall if rates rise?

By duration, about 6.4% for BNDX and 4.8% for VGIT for each one-point rise in yields, before counting the interest each fund earns. This is an estimate, not a forecast.

BNDX vs VGIT, do they hold the same bonds?

No. The holdings files compared here share no bonds at all, because the funds draw from different parts of the bond market. The sector overlap on this page is about 0%.

VGIT vs BNDX, does the order change the comparison?

No. VGIT vs BNDX and BNDX vs VGIT describe the same pair of funds, and every figure on this page applies either way. The order only decides which fund is listed first.

BNDX vs VGIT, can I own both?

You can. The two funds hold different exposures, with an overlap of 0%, so owning both gives a different mix from owning either alone.

BNDX vs VGIT, are they suitable for Canadian investors?

Both are U.S.-listed and trade in U.S. dollars, so Canadians face currency conversion costs and should check how interest income is taxed in their account type before buying.

Pathways, not rankings or recommendations.